India’s Exports To China Increased Faster Than Imports: Govt Official
India's trade numbers with China have improved in recent years, with outward shipments growing faster than imports, which are being driven mostly by key raw materials and to meet demand from high-growth industries such as telecom and power, according to the government official. China is one of India's major trading partners and business between the two nations has increased 59 per cent from USD 72 billion in 2014-15 to USD 115.4 billion in 2021-22.
According to the official, India's exports to China increased by 78.1 per cent to USD 21.25 billion last year, up from USD 11.9 billion in 2014-15, while imports increased by 55.8 per cent to USD 94.16 billion, up from USD 60.4 billion in 2014-15. In comparison, imports from China surged 192 per cent between 2006-07 and 2013-14, reaching USD 51 billion. Intermediate products account for more than a third of India's imports from China, while capital goods account for 19.3 per cent, with telecom and power sector equipment being the primary drivers, which helped meet domestic demand in these rapidly developing industries. Electronic components, computer hardware and peripherals, telecom instruments, organic chemicals, industrial machinery for dairy, residual chemicals and allied goods, electronic instruments, bulk pharmaceuticals and intermediates are the most important things imported from China.
"India's reliance on such Chinese goods can be traced largely to the gap between domestic production and demand, as well as China, being a manufacturing hub with price competitiveness due to economies of scale and government subsidies offered to Chinese industry," the official added.
However, production-linked incentive schemes for various sectors will assist reduce reliance on such imports over time, while technical restrictions defined for products such as toys, electronics, chemicals and fertilisers will curb sub-standard imports.